Which of the Following Is Not One of the Reasons

question 70

Multiple Choice

Which of the following is not one of the reasons that auditors provide only reasonable assurance on the financial statements?

• A) The auditor commonly examines a sample, rather than the entire population of transactions.
• B) Accounting presentations contain complex estimates which involve uncertainty.
• C) Fraudulently prepared financial statements are often difficult to detect.
• D) Auditors believe that reasonable assurance is sufficient in the vast majority of cases.

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Definitions:

Peak Period

The time frame during which the highest level of activity, usage, or demand occurs.

Off-Peak Period

A time period during which demand for a service or product is lowest, often leading to lower prices.

Marginal Subcontracting Cost

The additional cost incurred for subcontracting an extra unit of production or service, beyond current levels.

Layoff Cost

Expenses incurred by an organization when it temporarily or permanently terminates employment, typically including severance pay and benefits continuation.